26, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair could not break through the level 1.3090 and started a correction towards 1.3000. The pair is being traded in a narrow channel between the Bollinger bands. We believe that before the ECB's decision on interest rates the pair will not move significantly.

The price is below the Tenkan-Sen and Kijun-Sen. The Tenkan-Sen is the Kijun-Sen. The Tenkan-Sen is directed upward, the Kijun-Sen is directed sideways. The Cloud is directed downward.

Bollinger lines are narrowing and going down.
MACD histogram is parallel the zero line.

Trading recommendations

The sell signal is confirmed but weak, as the Chinkou Span is below the price, and the price is in a lateral channel. The indicators and graphical analysis suggest the decline. The pair will be in the short term either in a flat or will continue to move downward.

It is recommended to go short. The first target of the downward movement is the level 1.2940.